Pump.fun’s AMM Revolution: Could It Oust Raydium? Discover Now!

Pump.fun Tests New AMM, Perhaps Rivaling Raydium

Pump.fun, a well-known Solana-based memecoin launchpad, is reportedly testing its own automated market maker (AMM). This move could challenge Raydium’s position as the default decentralized exchange for tokens graduating from Pump.fun.

The news was first shared by Aggr news on the X platform. They noticed a new liquidity pool under internal testing at amm.pump.fun. If successful, this in-house AMM could help Pump.fun retain more fees, possibly affecting Raydium’s trading fees.

memecoins are still a big part of the DEX market. Pump.fun has already made over $500 million in swap fees,as per DeFiLlama. Only about 1.4% of tokens launched on Pump.fun move to Raydium. An in-house AMM could keep more liquidity within Pump.fun’s ecosystem.

Some in the X community think this could lead to new features like memecoin perpetuals and lending. If Pump.fun proceeds with this change, Raydium’s trading volume could drop by 30-50%. This would hurt Raydium’s market position. Raydium’s token, RAY, has already fallen 20% in the last 24 hours, according to coingecko.

Pump.fun has also been in the news for stopping a hacker linked to the recent $1.4 billion Bybit hack.The platform blocked the hacker’s ability to launder stolen funds. The hacker had already pushed over $26 million in trade volume with a coin called “QinShihuang (500000)” before being banned.

According to blockchain data, the attacker moved 60 SOL to a different wallet before launching the token on Pump.fun, possibly to hide the stolen assets.